Analysis Complete for House Bill 2158

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HB 2158, titled AN ACT Relating to creating a workforce education investment to train Washington students for Washington jobs, 10 year analysis complete.

The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		B&O Tax
2020		$ 121,600,000
2021		305,800,000
2022		303,300,000
2023		309,800,000
2024		318,800,000
2025		328,000,000
2026		337,600,000
2027		347,400,000
2028		357,500,000
2029		367,900,000
Total:		$ 3,097,700,000

This bill would implement new, and expand existing, workforce education opportunities to help prepare people for jobs that will require postsecondary credentials.  A Workforce Education Investment Account would be created to provide funding to carry out the various initiatives listed in the bill.  Activities listed in the bill would be funded by a twenty percent surcharge on Business and Occupation (B&O) taxes paid by certain entities.  The surcharges would take effect on business activities occurring on or after January 1, 2020.

The Washington State Board for Community and Technical Colleges does not set, administer or collect any of the taxes listed in this bill.

Section 72 of the bill does impose a new tax. This tax will be collected by Department of Revenue (DOR).  ESD will receive revenue from the collection of that tax therefore the 10 year analysis impact is for the DOR.

For Part IV, Section 6 provides appropriations. Per OFM instructions, these appropriations are not finalized we have not included amounts in the cash receipts table.

For Part IV(B)(2), a state-run student loan program could make it more affordable or attractive for students to seek educational opportunities at WWU or at other institutions. As a result, WWU could see additional undergraduate enrollment in its programs. That said, Western is not expecting significant increases in enrollment capacity at this time, so any impact is indeterminate and likely to be minimal.

For Part IV, Section 6 provides appropriations. Per OFM instructions, these appropriations are not final. We have not included amounts in the cash receipts table.

For Part IV(B)(2), a state-run student loan program could make it more affordable or attractive for students to seek educational opportunities at Eastern or at other institutions. As a result, Eastern could see additional undergraduate enrollment in its programs. That said, the university is not expecting significant increases in enrollment capacity at its three campuses, so any impact is indeterminate and likely to be minimal.

SECTIONS 45-51, State Student Loan Program

Per Section 50, the Washington Student Loan Account would be established into which loan repayments would be deposited. 

Cash receipts are indeterminate, as they are dependent on the level of appropriations for the program, interest rates, number of borrowers, loan amounts, repayment terms, and default rate.  Once initial borrowers enter repayment, revenue would be ongoing.

L&I will not have cash receipts associated with this bill.

The Office of Financial Management receives no cash receipts for the requirements of this bill.

The Office of the Governor will not receive any cash receipts related to the requirements of this bill.